Published on 7/29/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $728,000 callable notes with contingent return on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, July 29 – HSBC USA Inc. priced $728,000 of callable notes with contingent return due July 29, 2024 linked to the Dow Jones industrial average, the Russell 2000 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a contingent coupon at an annual rate of 9.6% if each underlier closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that quarter period.
The notes are callable at par quarterly after one year.
The payout at maturity will be par plus the final contingent coupon unless any underlier finishes below its barrier level, in which case investors will be fully exposed to the decline of the worst-performing underlier.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
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| Underliers: | Dow Jones industrial average, Russell 2000 index and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $728,000
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| Maturity: | July 29, 2024
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| Coupon: | 9.6% per year, payable quarterly if each underlier closes at or above coupon trigger level on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any underlier finishes below barrier level, in which case full exposure to decline of worst-performing underlier
|
| Call option: | At par quarterly after one year
|
| Initial levels: | 27,269.97 for Dow, 1,580.417 for Russell and $25.25 for ETF
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| Coupon trigger levels: | 16,361.982 for Dow, 948.2502 for Russell and $15.15 for ETF; 60% of initial levels
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| Barrier levels: | 14,998.4835 for Dow, 869.22935 for Russell and $56.719 for ETF; 55% of initial levels
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| Pricing date: | July 24
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| Settlement date: | July 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.625%
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| Cusip: | 40435UTC8
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